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Reply to "Passive Income Strategies"

@Brigat posted:

@Zach Filstrup, You mentioned Fundrise and Diversy Fund. What has been your experience with them? I've been to both websites, but got bogged down in all the small print.

Hi Brigat so my experience overall has been pretty good with both platforms. I will say there are a few caveats to both. The expense ratios are pretty comparable in terms of costs/fees on both platforms.

I will say that to get started in Fundrise is cheaper then Diversyfund. The minimum to get started is $500 which is equal. However, the monthly minimum if you want auto-investing is much pricer with a minimum of $500/mo. at DiversyFund and around $100/mo. you can do auto-investing with Fundrise.

The interface I prefer FundRise and its mobile app. I find the Diversyfund app or it's website a bit messy and distracting to find information.

If you are looking for quicker returns and cash these vehicles might not be the right fit like most real estate you have to hold it for 5 years or more to see a profitable return when you factor in taxes, capital gains, and lack of liquidity.

If you want a simple portfolio that is focused on one type of investment property, DiversyFund will be better for you. If you want to invest in a variety of real estate properties and have access to more advanced strategies, then Fundrise will be the better investment platform for you.

These vehicles can create passive income but moreso if your able to hold them longer is the key takeaway being a crowdfunded types of offerings. This basically allows investors to get into the real estate game with less capital and avoiding all the headaches of being a landlord.

I would be happy to answer any future questions you might have and provide help! 🙂